India's Inflation Falls Below 4% Target, RBI Rate Cut Likely?

  Published 1 year ago

India's retail inflation drops to 2.82% in May, lowest in six years, as food prices ease, reinforcing RBI's recent 50, bps rate cut.

  • Food inflation hits 0.99% in May, down sharply from 1.78% in April, driven by 13.7% fall in vegetable prices.
  • Core inflation remains stable at 4.17, 4.20%, but RBI shifts policy stance to 'neutral' amid inflation control.
  • Economists hint at possible 25, bps rate cut if inflation undershoots RBI's 3.7% 2026 forecast by 20 bps.

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